Indian SoftwareIndian SoftwareSince the labor is so much cheaper in India than it is in the United States, more and more software industries move their companies over seas. It is also very easy to transfer software from one continent onto another due to today’s technology. India has a comparative advantage over software because they specialized in this field, they do not need many resources to make it and they get the people to do it. Because of this they can export their product to other countries and buy some other product which they do not make. The comparative advantage theory explains the rise of Indian software industry to the fullest, and it makes a lot of sense why they grew so much over the past decade.
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International Software Market
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One of the most common reasons why multinational companies can sell more technology products to Asia-based customers is their strong comparative advantage. Some of the companies selling all their software for sale in the Asia-Pacific area are based in the USA. Those companies are often from China. These companies have high profits and profit margins from exports. Therefore their product is sold in Asia and the rest of the world. The United States does not have a large IT supply in Asia, so the companies do not invest much time and money to sell software that is only available to those people. However, the US is a huge market for software. I think this also is why the US has to focus more on making software for its own business than on other uses. I think this would be too confusing. So one way to deal with this is to make sure that there is enough of the US as a major market for new products and to work closely with other countries.
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European Software Market
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Most European European companies with small business are selling their software in the same way as in Europe’, so it is common nowadays. A good example is Nokia Corporation. They sell their software in several ways. First, they use proprietary software. Second, their products come in different sizes for different countries of origin. Thirdly, there are different components (e.g. LCD, USB 2.0 and Ethernet, Micro USB 2.0 is available only on iPhones that are sold abroad and used in the USA). It makes sense that the product you want to trade it with that one country is what you want in that country.
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Asian States
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From the outside these companies look the same, but due to differences of language, it is very difficult to think of specific States which all have different software products as being the same. Therefore, these guys have an advantage for Asia-Pacific because they have very good competition for their product and they do not have to worry that they will charge too much for a lot of products.
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Asia-Pacific
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The United States is the major export market in the Asia-Pacific region of the world. However, in other developed countries, the US does not sell that large portion of their software for trade purposes.
In China, Apple sold their hardware in the same way as in other countries. There is another reason of these countries, they have lots of IT. However, the technology is too expensive, the cost of manufacturing of them increases at least slightly, and that kind of technology is not competitive with the Chinese hardware products. This
’
International Software Market
’
One of the most common reasons why multinational companies can sell more technology products to Asia-based customers is their strong comparative advantage. Some of the companies selling all their software for sale in the Asia-Pacific area are based in the USA. Those companies are often from China. These companies have high profits and profit margins from exports. Therefore their product is sold in Asia and the rest of the world. The United States does not have a large IT supply in Asia, so the companies do not invest much time and money to sell software that is only available to those people. However, the US is a huge market for software. I think this also is why the US has to focus more on making software for its own business than on other uses. I think this would be too confusing. So one way to deal with this is to make sure that there is enough of the US as a major market for new products and to work closely with other countries.
’
European Software Market
’
Most European European companies with small business are selling their software in the same way as in Europe’, so it is common nowadays. A good example is Nokia Corporation. They sell their software in several ways. First, they use proprietary software. Second, their products come in different sizes for different countries of origin. Thirdly, there are different components (e.g. LCD, USB 2.0 and Ethernet, Micro USB 2.0 is available only on iPhones that are sold abroad and used in the USA). It makes sense that the product you want to trade it with that one country is what you want in that country.
’
Asian States
’
From the outside these companies look the same, but due to differences of language, it is very difficult to think of specific States which all have different software products as being the same. Therefore, these guys have an advantage for Asia-Pacific because they have very good competition for their product and they do not have to worry that they will charge too much for a lot of products.
’
Asia-Pacific
’
The United States is the major export market in the Asia-Pacific region of the world. However, in other developed countries, the US does not sell that large portion of their software for trade purposes.
In China, Apple sold their hardware in the same way as in other countries. There is another reason of these countries, they have lots of IT. However, the technology is too expensive, the cost of manufacturing of them increases at least slightly, and that kind of technology is not competitive with the Chinese hardware products. This
Heckscher-Ohlin theory believes that the comparative advantage depends on the resources the country has; meaning land, labor, and capital. This is the extent to which Indian software industry goes. They have very good resources and mostly important they have a cheap labor. Engineers do get paid a lot but labor force has a very low income.
Porter’s Diamond goes in a different direction than Heckscher-Ohlin theory does. Porter believes that the reason industries do so well is because of the well skilled labor, home demand, and the firm’s strategy which is really important, but in the Indian industry case does not resolve the question really. United States could